Singapore’s Stricter Penalties: From Motorcycle Modifications to Major Tax Evasion

SINGAPORE: In recent weeks, two notable cases have highlighted the government’s rigorous stance on illegal modifications and tax evasion, reflecting a broader commitment to enforcement across various sectors.

Motorcycle Exhaust Modifications Lead to Jail Time

A 48-year-old man, Tang Yong Shun, was sentenced to six days’ jail and fined S$11,000 (US$8,600) for illegally modifying three motorcycles’ exhaust systems. This landmark case marked the first time an individual received a jail term for such modifications in Singapore.

In 2020, Tang applied to the Land Transport Authority (LTA) to become the official distributor of Dr Jekill and Mr Hyde aftermarket exhausts, but he failed to secure the necessary approvals before making sales.

  • Between May 2020 and November 2022, Tang modified three motorcycles without the valid Vehicle Accessory Approval Code (VAAC).
  • He charged riders hefty sums, knowing the exhausts were unapproved for road use.

The LTA remains vigilant, as the illegal modifications significantly impact noise and emission standards.

Tax Evasion and Money Laundering: A Serious Offence

Meanwhile, Eric Tan Zhi Hao, a 32-year-old man, received a staggering sentence of 28 months in prison and a hefty fine of S$4,194,000 (US$3,281,000) for tax evasion and laundering the proceeds of crime. Tan pleaded guilty to nine counts of evading excise duties and Goods and Services Tax (GST).

Operating through his company, Eagle 9 Automotive, Tan conspired with co-accused individuals to under-declare the value of imported motor vehicles. This sophisticated scheme resulted in the evasion of over S$1.14 million in taxes over a mere span of one year.

  • He orchestrated fraudulent “warranty payments” to conceal the actual costs, affecting 485 vehicles—over 190 involving his firm.
  • Tan even attempted to obstruct justice by deleting incriminating communications after an arrest within his conspiratorial circle.

As the Singapore Police Force (SPF) stated, the government will not shy away from harsh penalties for such offences, underscoring a zero-tolerance policy toward fraudulent activities.

Ongoing Vigilance Against Fraudulent Activities

Both Tang’s and Tan’s cases serve as stark reminders of Singapore’s ongoing commitment to maintaining legal integrity while ensuring compliance with national standards. As highlighted, individuals and businesses must remain vigilant and report any suspicious transactions to avoid legal repercussions.

In this landscape of stricter enforcement, it’s clear the LTA and SPF are sending out a strong message—a well-functioning society requires adherence to laws, ensuring every citizen plays their part.